USA Technologies and NEXCOM to Pilot Availability of Cashless Payment Vending Options at Selected Navy Bases in the U.S.

  USA Technologies and NEXCOM to Pilot Availability of Cashless Payment
  Vending Options at Selected Navy Bases in the U.S.

Business Wire

MALVERN, Pa. -- June 5, 2013

USA Technologies, Inc. (NASDAQ: USAT), (“USAT”), a leader of wireless,
cashless payment and M2M telemetry solutions for small-ticket, self-serve
retailing industries, and the Navy Exchange Service Command (NEXCOM) will
begin to make available cashless payment options using USAT’s ePort and ePort
Connect service at select pilot Navy Exchanges located on U.S. Naval
installations.

“NEXCOM operates approximately 11,000 combined contracted and direct run
vending machines on U.S. Naval bases across the country,” said Gerard Fantano,
NEXCOM’s vending branch manager. “To date, only a small number of contracted
beverage machines have incorporated cashless options to our customers. Based
on industry trends and the increased usage of cashless options, we are
piloting the expansion on Navy owned and operated machines to evaluate the
economic benefits and customer acceptance.”

During the pilot test period with USAT, NEXCOM’s goal is to learn about the
benefits of cashless from a deployment of up to 200 cashless terminals and,
subject to profitability, to possibly expand to selected machines nationwide.

“We are pleased to welcome NEXCOM to USAT’s growing list of customers for
cashless payment and M2M telemetry,” said USAT’s vice president of sales and
business development, Michael K. Lawlor. “We anticipate that NEXCOM’s returns
would be similar to what other USAT customers experience, and our objective
with NEXCOM is to move system-wide. We already know that cashless usage in
other military installations USAT serves continues to be well above average.
For example, based on our 2013 ePort Connect Cashless Knowledge Base, which
evaluated data and channel information from approximately 62,000 ePort Connect
cashless vending terminals that had at least $2,000 in annualized cashless
sales over a three-month period between January and March 2013, cashless as a
percent of total sales averaged 46% for the military channel (non-Navy)
compared to an overall average of 32%. We are looking forward to working with
NEXCOM to demonstrate the benefits of cashless and the ease with which they
can continue to increase their cashless requirements with USAT.”

NEXCOM will be utilizing USAT’s ePort NFC enabled cashless payment technology
and ePort Connect service, a one-stop service that includes integrated
wireless activation, pre-negotiated discounted fees on small-ticket purchases,
a single blended rate for transaction processing, 24 x 7 customer service, and
web-based customer reporting.

About NEXCOM

The Navy Exchange Service Command (NEXCOM) oversees 100 Navy Exchange (NEX)
facilities and nearly 300 stores worldwide, 40 Navy Lodges, Ships Stores
Program, the Uniform Program Management Office, the Navy Clothing Textile and
Research Facility and the Telecommunications Program Office. NEXCOM's parent
command is the Naval Supply Systems Command. NEXCOM’s mission is to provide
authorized customers quality goods and services at a savings and to support
quality of life programs for active duty military, retirees, reservists and
their families. NEXs and Navy Lodges operate primarily as a non-appropriated
fund (NAF) business instrumentality. NEX revenues generated are used to
support Navy Morale, Welfare, and Recreation (MWR) programs. In FY11, $2.7
billion in sales were generated with $42.8 million in dividends provided to
Navy MWR programs.

About USA Technologies:

USA Technologies is a leader of wireless, cashless payment and M2M telemetry
solutions for small-ticket, self-serve retailing industries. ePort Connect® is
the company’s flagship service platform, a PCI-compliant, end-to-end suite of
cashless payment and telemetry services specially tailored to fit the needs of
small ticket, self-service retailing industries. USA Technologies also
provides a broad line of cashless acceptance technologies including its
NFC-ready ePort® G8, ePort Mobile™ for customers on the go, and QuickConnect™,
an API Web service for developers. USA Technologies has been granted 85
patents; and has agreements with Verizon, Visa, Elavon and customers such as
Compass, Crane, AMI Entertainment and others. Visit the website at
www.usatech.com.

Forward-looking Statements:

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: All statements other than statements of historical fact included in this
release, including without limitation the anticipated connections to our
network, business strategy and the plans and objectives of USAT’s management
for future operations, are forward-looking statements. When used in this
release, words such as "anticipate," "believe," "estimate," "expect,"
"intend," and similar expressions, as they relate to USAT or its management,
identify forward-looking statements. Such forward-looking statements are based
on the beliefs of USAT’s management, as well as assumptions made by and
information currently available to the USAT’s management. Actual results could
differ materially from those contemplated by the forward-looking statements as
a result of certain factors, including but not limited to, business, financial
market and economic conditions; whether or not the initial NEXCOM cashless
installations prove profitable; the ability of USAT to use its Knowledge Base
to accurately predict future market conditions and consumer behavior; the
ability of the Knowledge Base or USAT to predict any level of cashless usage
for any particular channel or customer; and whether, and to what extent, a
customer will increase its purchase of USAT’s products and services in the
future. Readers are cautioned not to place undue reliance on these
forward-looking statements. Any forward-looking statement made by us in this
release speaks only as of the date of this release. Unless required by law,
USAT does not undertake to release publicly any revisions to these
forward-looking statements to reflect future events or circumstances or to
reflect the occurrence of unanticipated events.

                                    G-USAT

Contact:

USA Technologies
Veronica Rosa, 484-359-2138
VP Corp. Comm. & Investor Relations
vrosa@usatech.com
 
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